Retirement is not what it used to be. The changing face of today’s retirees has many combining work and retirement to get the best of both worlds.

Words by ViewPoint Magazine
Photographs supplied courtesy of Queensland Tourism

Our ageing population and longer life expectancies are changing the face of retirement by providing older workers with greater control over their work and lifestyle. In 40 years time a person over the age of 65 will be “supported” by only two working age people compared to five working age people today – so it’s a societal issue as well.
For some people, retirement can’t come soon enough. They feel they have served their time and retirement is an opportunity to enjoy the fruits of their labour.
At the other end of the spectrum, there are those who can’t bear the thought of retirement. They love their work and consider it an important part of who they are. Without work, they worry they will become shadows of their former selves, without friends, purpose or self-fulfilment.
Then there is the middle ground, where people look forward to the freedom and flexibility of retirement but also consider work a priority, either because they haven’t accumulated enough money to fully retire or because they are not ready to give up the social and psychological rewards of work.

For people who want to work in any sort of capacity, life just got a whole lot easier.

Prior to 1 July 2005, a person who had reached their preservation age (currently 55) was required to retire permanently from the workforce and have no intention of returning to work (on either a full-time or part-time basis) to access their preserved superannuation benefits.

However from 1 July 2005, a new rule removed the ‘permanent retirement’ requirement for those who choose to access their superannuation in the form of a non-commutable income stream.

The most common form of non-commutable income stream you are likely to encounter is the non-commutable allocated pension. It is important you understand that, unlike a regular allocated pension, a non-commutable income stream cannot be commuted (except in limited circumstances), that is you cannot take as a lump sum from the income stream until you permanently retire or reach age 65.

The new rule is designed to provide more flexibility and opportunities for those making the transition from work to retirement. It particularly encourages semi-retirement, as people will have the ability to continue working with their current employer on a part-time basis and supplement their income with a non-commutable income stream.

At last, retirees have more flexibility in planning for a comfortable retirement.

It’s All About Lifestyle

Tamar Balkin, managing director of Retire For Life, a company that specialises in lifestyle advice for people transitioning from work into retirement, says a retirement plan is not complete unless you have considered the lifestyle aspects.
“The statistics show that people who don’t plan are far more likely to suffer from anxiety or depression when they retire,” she says. “That’s why it’s important to learn new skills in retirement and keep your mind and body active.”
Tamar says older workers are capable, reliable and highly skilled and just because they turn 65 doesn’t mean there are no employment opportunities available.
“The beauty of staying in the workforce is the psychological benefits, such as status, identity and social interaction. And with part-time work there is greater flexibility so that you can still make time for things you enjoy like golf or bridge.”
Until now, people wanting to enjoy the lifestyle benefits of part-time work may not have been able to support themselves on a reduced wage. By supplementing their wage with a pension from an income stream, they can, depending on the amount of money they have in super, earn as much as they would in full-time employment.

ClearView was one of the first in the market to provide this possibility to retirees. The ClearView Allocated Pension is an investment that pays an income stream from a person’s super investment. We have enhanced the ClearView Allocated Pension to offer the new “Ease into Retirement’ feature which caters for the new law. This is just one of a range of “tools” that ClearView’s Financial Advisers use to ensure that our clients can make the most of their retirement. The right tool will depend on the retiree’s individual circumstances and Equity Release Products (sometimes known as Reverse Mortgages) are another example of a tool that can be used as part of a retirement strategy.

ViewPoint is ClearView’s magazine produced for their members. Fore more information about ClearView call 132 976 or visit www.clearview.com.au.
Alternatively you can email them on clearview.enquiries@clearview.com.au.